Will FOMO Gas One other Rally Or Lead To A Bust?

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The Bitcoin worth made a robust comeback on Friday after witnessing a major quantity of bearish strain all through the previous week. On Wednesday, Might 1, the premier cryptocurrency fell under the $60,000 mark for the primary time in nearly two months.

On Friday, Might 3, the worth of BTC recovered above the $60,000 stage, going as excessive as $63,000 prior to now day. Nonetheless, the query is – can the Bitcoin worth take pleasure in a sustained rally following this newest resurgence?

How Lengthy Will The BTC Value Rally Final?

In a latest submit on the X platform, Santiment pointed to a shift in traders’ place and sentiment on the Bitcoin worth following the latest surge above $62,000. Based on the on-chain analytics website, merchants on the Binance platform are “going from liquidated shorts to longs” after the most recent worth enhance.

Whereas this shift in sentiment may sign renewed optimism within the premier cryptocurrency, Santiment sounded a warning bell for fans watching the Bitcoin worth and trying to get into the market. The blockchain agency stated in its submit: 

For the rally to proceed, we don’t need to see FOMO rising an excessive amount of greater than what it seems to be now.

Supply: Santiment/X

FOMO, or “concern of lacking out,” is a phenomenon the place traders unexpectedly buy in-demand belongings out of concern of lacking out on potential positive aspects. Whereas it might drive the asset to a better worth within the quick time period, extreme FOMO usually ends in unsustainable bullish developments and subsequent downturns.

What’s extra, crypto costs have a tendency to maneuver in the other way of the gang’s expectations. Therefore, if nearly all of merchants are betting on the Bitcoin worth to rise, there’s a nice probability that the cryptocurrency’s worth will expertise a drop.

Behind The Bitcoin Value Surge

As of this writing, the Bitcoin worth stands at round $62,871, reflecting a considerable 6% enhance within the final 24 hours. Though the catalyst for this newest Bitcoin rally stays unclear, on-chain knowledge exhibits that latest whale exercise might need triggered the bullish momentum.

In a latest submit on X, CryptoQuant CEO and founder Ki Younger Ju revealed that Bitcoin whales acquired 47,000 BTC in a single day. Ju additionally stated that whereas this class of traders might need included ETF-associated addresses, the latest spike in “balances for whale addresses” will not be ETF-related.

 Bitcoin worth fails to carry above $63,000 on the each day timeframe | Supply: BTCUSDT chart from TradingView

Featured picture from iStock, chart from TradingView

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